User Account

All Pages

Margin of safety in dollars and as percentage of sales

Assignment Help Financial Accounting
Reference no: EM13824083

Mississippi Company produces and sells one product. Its sales and expenses for last month were:

Total               Per Unit

Sales                                               $17,600          $16.00

Variable costs       11,000            11.00

Contribution Margin                              6,600    6.60

Fixed costs                                       6,000

Profit                                                     600

Compute Mississippi Company’s margin of safety in dollars and as a percentage of sales.

Reference no: EM13824083

Questions Cloud

Cost of inventory reported on balance sheet : Calculate the cost of inventory reported on the balance sheet. the total merchandise on hand at the end of the year as determined by taking a physical inventory is $62,000, $8,000 has been sold FOB destination and is awaiting pickup by the carrier.
Necessary to close the manufacturing overhead account : What journal entry(s) are necessary to close the Manufacturing Overhead account if the amount in the account ($90,000) is all materials?
Operating leverage analysis-how much profits would increase : Using an operating leverage analysis, determine how much profits would increase for each company if each experienced a 10% increase in sales.
Company incurs variable costs and fixed costs : Texas Company produces one product that it sells for $50 per unit. In producing that product, Texas Company incurs variable costs of $35 per unit and fixed costs of $400,000. How many units of the product will Texas Company have to produce and sell t..
Margin of safety in dollars and as percentage of sales : Mississippi Company produces and sells one product. Its sales and expenses for last month were: Compute Mississippi Company’s margin of safety in dollars and as a percentage of sales.
Break-even point for sales of this product : Ohio Corporation sells its product for $16 per unit and incurs variable costs of $10 per unit and total fixed costs of $12,000. What is Ohio Corporation’s break-even point for sales of this product?
Evaluate the plan to skip the dividend : Metro Bus Company had $400,000 of revenue and $401,000 of expense (including depreciation) for the current year resulting in a $1,000 net loss. All revenues were received in cash. All expenses were paid in cash except for depreciation of $181,000. Ev..
Prepare journal entries for the transactions : A check was issued for 98.05 to replenish the petty cash fund. A total of 1.95 is all that remains in the petty cash box at this time. All of the receipts have been accounted for and the summary below shows the following expenditures have been made f..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Classified as being beneficial in future capitalized

Using financial statements from a company of your choice, categorize the expenditures on operational assets of the company based on whether they give future benefits.

  Year-end balance sheet presentation for accounts receivable

During Burns Company’s first year of operations, credit sales totaled $140,000 and collections on credit sales totaled $105,000. Burns estimates that bad debt losses will be 1.5% of credit sales. By year-end, Burns had written off $300 of specific ac..

  Convert the divisional absorption income statement

Convert the divisional absorption income statement to a contribution margin income statement for the quarter and prepare absorption and contribution margin income statements for the succeeding quarter for the division.

  What does term noncontrolling interest mean

What does the term noncontrolling interest mean? Where should the noncontrolling interests claims be reported in a consolidated set of financial statements?

  Determine the quick ratio for december 31

Determine the quick ratio for December 31, 2012 and 2011 and interpret the change in the quick ratio between the two balance sheet dates.

  Determine the number of rentals and the sales revenue

Jane Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $60,000 per year. Jane employs a maintenance person at an annual salary of $32,000 and a cleaning person at an annual salary of $24,000...

  Importance of the sox act

Importance of the SOX Act, but he acknowledged that he does not know much about it. He requested that you explain why the SOX Act was enacted and if you think it has helped the industry.

  Explain the income measurement process

How do the components of revenues and expenses differ between a merchandising company and a service enterprise?

  Compute the projects simple rate of return

Compute the projects payback period - compute the projects simple rate of return.

  Regard to a needed piece of business equipment

Taxpayer, who has a marginal tax rate of 25%, has two options with regard to a needed piece of business equipment. She can buy the equipment now for $10,000 cash, use it for six years, and discard it (no salvage value). The asset would be expensed im..

  Prepare a cash budget by month

Prepare a cash budget, by month and in total, for the three-month period and Prepare a cash Budget and a schedule  of expected cash collections for the data furnished below.

  Rex baker and ty farney are forming a partnership to which

rex baker and ty farney are forming a partnership to which baker will devote three-fourth time and farney will devote

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd